High crop in the U.S., Brazil and Ukraine will limit the growth of prices on corn

Low prices for corn of the new harvest on the stock exchange in the United States last week received a powerful factor of support in the form of a hurricane that rozruchu some elevators and damaged some of the corn crops in Iowa.

But the data is monitored weekly by the USDA, which announced after the market showed a significant deterioration of crop conditions. The number of corn crops in the U.S. in good or excellent condition fell last week by only 2% to 69% compared to 56% in 2019, and in Iowa by 10% to 59%, although it was expected that it affected 4 million hectares of crops.

against the background of high crop forecasts of corn in the U.S., Brazil and Ukraine, farmers do not hurry contractualise, because I think the prices are too low. However, the pending proposals of Brazilian corn can be on the market at the same time with corn from the United States and Ukraine, where harvesting will start early.

the December corn futures in Chicago last week increased by 7.5% to 135,3 $/t on data about losses from a hurricane, in spite of bearish USDA report and the breakdown of trade negotiations between the US and China.

the maturation of corn is faster than last year. In the stage of lactic ripeness is 76% of crops, wax – 23%, whereas a year ago the figure was 50% and 13%, respectively. Dry and warm weather in the "corn belt" of the USA next week will accelerate the ripening of corn, and farmers from September will begin the collection.

corn Exports from the United States for the week decreased to 1.03 million tonnes, and in General in 2019/20 MG was 40.3 million tonnes projected by the USDA to 43 million tonnes, which is 12.8% lower than the level of last year.

Growth stock prices led to price increases of proposals for delivery to Asia in October-November 10-15 $/t to 210-215 $/t CFR, which reduced the demand from buyers.

In Brazil, high domestic prices hindered the export of corn, although in recent years he has intensified amid forecasts the corn harvest in the current season to 102 million tonnes in the new up to 107-108 million tonnes during the first week of August the country exported 2 million tons of corn, the second week another 1.5 million tons and by the end of the month, according to shipping agents Williams Brazil will be shipped an additional 5.1 million tons.

Normally in August and September completed the harvest of corn second crop safrinha that export more than they use on the domestic market.

prices of Brazilian corn remain at 178-180 $/t FOB, American – 170-175 $/MT FOB Ukrainian – 170 $/t FOB and it is unknown who was the first to begin to lower prices for increased sales of grain.